- You work and therefore you earn a salary,
- thus you have money and would therefore use a bank account,
I’m gonna use myself as an example. Even though the details may be different, especially if you don’t live in Australia, the principles should be the same.
You only have a set amount of fee-free transations, whether they be EFTPOS*, direct-debit to pay your bills or the ATM. After which, your bank would charge you a fee for each transaction.
The quick and easy way to bypass all that is to get a credit card. Credit card companies do not charge you on the transactions. But they do charge you interest if you don’t pay your account in full at the end of every month, so be aware of that.
Once you’ve got a credit card:
- transfer all your automatic bill-payments to the credit card,
- and use cash or your credit card to make most of your purchases.
The only bank transaction that you should be doing is withdrawing cash from the ATMs. But avoid other banks’ ATMs as well as those at convenience stores, pubs and nightclubs. You should always try and withdraw from your bank’s ATMs. Otherwise you’d get slugged with another fee again. Yeah bloodsuckers, I know.
The precaution that you have to take with credit cards is that you have to be disciplined – pay off the bill every month and don’t splurge on it. Remember that you are still withdrawing cash from your ATM. Do not be tempted to use revolving credit as well, ie. using one credit card to pay off the other. You’d be trapped in an endless cycle of debt.
* EFTPOS = Electronic Funds Transfer Point-of-Sale. Works like debit-cards.
Idea for this post was inspired from reading:
- ATM fees $600m and rising: report – National – smh.com.au
- Dominic Knight’s (Radar @ SMH) reaction to that story.